Twist Bioscience Corporation (NASDAQ:TWST) saw its stock drop 9% on Friday after the synthetic biology company posted a larger-than-expected fourth-quarter loss, despite delivering better-than-forecast revenue.
The company reported a quarterly loss of -$0.45 per share, wider than analysts’ expectations of -$0.41, while revenue reached $99 million, topping the consensus estimate of $97.21 million. Sales increased 17% from the $84.7 million recorded in the same quarter last year.
Shares sank as investors appeared frustrated by the persistence of losses even as the business continues to scale. Twist posted a 51.3% gross margin, up from 45.1% a year earlier, reflecting improved operational efficiency.
“We ended the fiscal year with record revenue in the fourth quarter exceeding our guidance. By leveraging our technology, commercial execution and meeting the needs of our customers, we expanded our customer base and grew revenue 20% for the full fiscal year compared to the year prior,” said Emily M. Leproust, CEO and co-founder of Twist Bioscience.
Looking ahead to fiscal 2026, Twist projects $425 million to $435 million in revenue, representing 13% to 15.5% growth year-over-year. The company also expects gross margins to stay above 52%, and is targeting adjusted EBITDA breakeven in the final quarter of fiscal 2026.
The company expanded its reach in fiscal 2025, shipping products to about 3,800 customers, up from 3,550 the prior year, and delivering roughly 938,000 genes, compared with 772,000 a year earlier.
For the first quarter of fiscal 2026, Twist anticipates revenue between $100 million and $101 million, implying 13% to 14% growth versus the same period in fiscal 2025.